Center City Retail Update
Retail in Center City
A survey of all storefronts within Center City District’s boundaries during the month of May reveals that retail occupancy is 83.6%, down a percentage point compared to last fall’s survey (84.5%). However, the key corridors of Walnut Street and Market East both saw occupancy grow thanks to the arrival of new tenants.
With 33 openings anticipated by year’s end, several other notable vacancies are set to be transformed to active uses. Already in 2024, 41 new retailers have opened (see list and map on pages 7 and 8). Foot traffic continues to climb, and outdoor seating remains in high demand.
Several of the most prominent new vacancies are national brands experiencing contraction or a full pivot away from brick-andmortar. Allbirds, for example, announced that it will close 10-15 stores nationwide in 2024, while Outdoor Voices ceased retail operations altogether.
The announcement of bankruptcy at Express affected Center City three ways: the company shuttered its outlet store at Fashion District, its high-end Express Edit concept on Walnut Street, and
Report Key Takeaways
Retail occupancy within Center City District boundaries is 83.6%, down from 84.5% in September 2023.
Center City outperforms the region’s major malls not only in its accessibility, but in nearby concentrations of wealth: The region’s four wealthiest ZIP codes are all in Greater Center City.
the Bonobos store a few doors down. A late-breaking deal will see Express emerge from bankruptcy, so it remains to be seen if some of these closures will be reversed.
Two trends sweeping the national retail landscape are playing out favorably for Center City: the clustering of digitally native brands in brick-and-mortar locations and a wave of experiential and entertainment concepts. A question to consider in 2024 is how to attract retail categories underrepresented or missing altogether from the downtown mix.
74 new retailers have opened recently or will open later in 2024 across the downtown.
The downtown’s superior accessibility combined with its improving safety and demographics tee up a strong environment for attracting retailers to Center City.
Stacking Center City Up Against the Suburbs
Greater Philadelphia’s six million residents support hundreds of shopping centers, malls, and walkable downtown districts across the metropolitan area, but three rise to the top in terms of prestige, size, and dynamism: Center City, the Cherry Hill Mall, and the King of Prussia Mall. Located in high income areas to the east and northwest of downtown, these two malls—which remain exceptionally strong in the context of the national retail landscape—are often characterized as far surpassing Center
Table 1
Retailers Unique to Center City
Boyd’s
Brooklinen
Equinox
Glossier
Joan Schepp
Joybird
Lagos
Lapstone & Hammer
MMLaFleur
Mejuri
Nike World of Flight
Rag & Bone
Reformation
Not only can Center City claim to be the sole location for many exciting brands, it also offers many of the same stores found in Cherry Hill and King of Prussia (see Table 2). Our analysis finds that more than 70 apparel and accessories stores listed in the mall directories also have a flag downtown (though a handful are outlet concepts). This same analysis also identified more than 20 retail concepts recently departed from Center City that still have a presence in one or both malls.
This is particularly striking in light of new analysis from The Business Journals on the 1,000 wealthiest ZIP codes in the
City’s offerings. It is undeniable that these malls have captured and clustered certain market segments, with King of Prussia in particular serving as the singular regional destination for luxury goods and high-end department stores. But it is also true that Center City is the sole regional location for many coveted brands and concepts (see Table 1), with the urban core’s demographics driving location decisions for many digitally native concepts marketing to those ages 40 and under.
Table 2
Retailers with Locations in Center City and Major Malls
Allen Edmonds
Alo
Brooks Brothers
Indochino
L’Occitane
Primark
Suit Supply
Tumi
Torrid
Uniqlo
Vince
Vuori
Windsor
United States (see Table 3). This nationwide ranking takes into account the density of high-income people to understand the actual concentration of total wealth. With this critical factor taken into account, the top 4 wealthiest ZIP codes in our region are all within Greater Center City, with 19103 ranking as the 24th wealthiest ZIP code in the country. The wealthiest suburban ZIP code (Wynnewood—19096) sits nearly 200 spots below Fairmount (19130) in the rankings, and famously wealthy enclaves like Bryn Mawr, Gladwyne, New Hope, and Villanova do not crack the top 500.
Table 3
Source: Philadelphia Business Journal
Focusing on Retail Attraction
There is a strong case to be made that Center City has never been more appealing as a retail destination, particularly in light of how many shoppers and workers can access each shopping destination by all modes of transportation (see Table 4). There is also strong evidence to support the fact that Center City residents leave downtown for certain kinds of shopping trips or to access certain retailers, meaning that the spending power of Greater Center City is not being captured in full by Greater Center City businesses. As the first steps in a broader retail attraction effort, Center City District is seeking to gather data on these dynamics, and to hear from residents and shoppers about what they think is missing from the downtown retail ecosystem through an online survey (QR code below).
Table 4
Comparing Population, Jobs, and Accessibility around Center City and Major Malls
Source: ESRI Business Analyst
Scan the QR code to take our Center City shopper survey. Help us paint a clearer data-driven picture of where people shop, and why, and how Center City could recapture some of that economic impact.
Center City Retail by the Numbers
105,513 Average
227,269
Recent Openings
Food & Beverage
Almyra 1636 Chancellor Street
Barcade 1326 Chestnut Street
Bar Lesieur 1523 Sansom Street
Cafe Square One 1225 Walnut Street
Chubby Cuppa Tea 922 Arch Street
Ding Feng Tang 1021 Arch Street
Dizengoff 1625 Sansom Street*
Gojo Poke 1701 Arch Street
The Ground Rittenhouse 116 S. 18th Street
Hey Yogurt 115 N. 9th Street
Hi-Lo Taco Co. 1109 Walnut Street
Insomnia Cookies 1 S. Broad Street
Jiang Nan 927 Arch Street
Jimmy John’s 44 S. 17th Street
Kwench Juice Cafe 1500 Market Street
Lucy’s 1720 Walnut Street
Miss Saigon 1316 Walnut Street
Mulherin’s Pizzeria 1175 Ludlow Street
NaBrasa Brazilian Steakhouse 1901 John F Kennedy Blvd
New Era Cuisine
1500 John F Kennedy Blvd (Concourse)
Oltremare 2121 Walnut Street
The Pierogie Place The Shops at Liberty
Puttshack 1625 Chestnut Street
Shay's 200 N. 16th Street
Space KTV Bar & Lounge 1025 Arch Street
Teazzi Tea Shop 1026 Arch Street
Retailers
Alo Yoga 1608 Walnut Street
BOTLD 117 S. 13th Street
Frankenstien Bike Worx 1427 Spruce Street
Jonesys Accessories 1931 Chestnut Street
Maison x Philly Fashion Week The Fashion District
The Narrative 124 S. 16th Street
Vuori 1705 Walnut Street
Service Providers
Architeqt Color Bar 1501 Walnut Street
Avita Pharmacy 1226 Chestnut Street
City Nail
1500 John F Kennedy Blvd (Concourse)
The Face Bar 1420 Walnut Street
LaserAway 1503 Walnut Street
SideQuest Theater at the Adrienne 2030 Sansom Street
The Sporting Club at the Bellevue 224 S. Broad Street, FL 8
W.O.L.F. Fitness Gym 1 S. Broad Street
Coming Soon
Food & Beverage Ayat 2021-23 Sansom Street
Boqueria 1608 Sansom Street
Borromini 1805-09 Walnut Street
Brooklyn Dumpling Shop 1504 Sansom Street
Brunchaholics 38-40 S. 19th Street
Chip City 204 S. 17th Street
Dave's Hot Chicken 1713 Chestnut Street
Dear Daphni 1911 Walnut Street
Flight Club Darts 1417 Walnut Street
Garage 1501 Spruce Street
Gouldsburger's 100-20 N. 18th Street
Hangry Joe’s Chicken 28 S. 20th Street
Koch’s Deli 622 Market Street
Levain Bakery 1516-18 Walnut Street
Little Gay Pub 102 S. 13th Street
Mona 1308 Chestnut Street
Pure Green 1124 Walnut Street
Rhythm & Spirits 1617 John F Kennedy Blvd
Rittenhouse Deli & Juice Bar 1510-12 Sansom Street
Starbucks 100-20 N. 18th Street
Taylor Chip 1807 Chestnut Street
Retailers
70Six Botique 132 S. 17th St
Aritzia 1725 Walnut Street
FIGS 1625 Walnut Street
Free Press 305 N. 15th Street
JD Sports 1530 Chestnut Street
Jefferson Campus Store 1000-31 Chestnut Street
M.M.LaFleur 1700 Sansom Street
Nike—World of Flight 1617 Walnut Street
Reformation 1723 Walnut Street
Service Providers
Equinox Gym 1911 Walnut Street
Fitting Atelier 1120 Walnut Street
Glowbar 42 S. 17th Street
* denotes relocation
New & Upcoming Retail Openings in Center City Since 2023
DILWORTH PARK
KENNEDY
“
Philadelphia is one of my favorite cities...It’s also a phenomenal food city and incredibly stylish. Many of our local customers work in academia or healthcare, and I love the way so many of them appreciate great style and practicality, in equal parts. They want clothes that are effortless all while saying ‘listen to me’—and that's what we do best.
” Sarah LaFleur Founder and CEO of M.M.LaFleur
Rittenhouse Row
Rittenhouse Row is Center City’s destination retail area and the one that nearly all national and out-of-market brands seek to enter when planting a flag in Philadelphia for the first time. Walnut Street in particular has undergone a fairly rapid transformation into a premier corridor for digitally native brands, but the neighborhood is also seeing an influx of entertainment concepts and significant investment from the restaurant industry. Larger format retailers struggle to find options here given the preponderance of smaller format spaces.
Occupancy: 83%
Independent retailers: 45%
Regional brands: 12%
National chains: 43%
Daily visitors & shoppers: 46,000 (82% of 2019 Levels)
Residents within a 20-minute walk: 84,617
West Market
Jobs within a 20-minute walk: 205,135
Notable stores: Apple, Boyd’s, J. Crew, Tiffany & Co., Vuori, Aritzia, Glossier, Reformation
The heart of Center City’s office district has ample opportunity to transform into a multi-use retail destination, particularly as residential density grows in and around the area. Large ground floor retail availabilities are great opportunities for supermarkets, childcare providers, and other big box and larger concepts under-represented or altogether missing from downtown. While lower volumes of office workers have slowed leasing, the area’s adjacency to several of the city’s highest-income and best-educated areas make it an excellent target location for brands looking for access to these populations, as well as students and workers in nearby University City.
Occupancy: 81%
Independent retailers: 45%
Regional brands: 15%
National chains: 40%
Daily visitors & shoppers: 32,600 (71% of 2019 Levels)
Residents within a 20-minute walk: 80,491
Jobs within a 20-minute walk: 195,415
Notable stores: Puttshack, Trader Joe’s, Kiehl’s, Bloomingdale’s
Market East
Formerly one of the world’s most bustling retail districts, Market East has struggled to define its retail identity as it has gradually redeveloped and department stores have shuttered. Anchored by Macy’s and the Fashion District, it has both existing vacancies and undeveloped land that could support a more intensive and dynamic mix of retail concepts, one that is particularly well positioned to capture tourists walking west from the historic district and conventioneers at the adjacent Convention Center. With or without a new home for the Sixers at 11th and Market streets, this corridor linking Independence Mall to the Convention Center is ideally situated to accommodate larger format, tourist-friendly concepts that build on existing concepts such as City Winery, Wonderspaces, Iron Hill Brewery, Round1 Bowling & Arcade, and AMC Theatres.
Occupancy: 81%
Independent retailers: 24%
Regional brands: 15%
National chains: 61%
Daily visitors & shoppers: 36,400 (96% of 2019 Levels)
Residents within a 20-minute walk: 74,246
Midtown Village
Jobs within a 20-minute walk: 212,669
Notable stores: TJ Maxx, AMC Theatres, Macy’s, Burlington Coat Factory, American Eagle
Midtown Village, Center City’s nightlife center, is home to the highest concentration of independent retailers in the district. Stylish restaurants and specialty stores create a small-town vibe in the heart of the city. While characterized by boutique and smaller format concepts, the district does contain larger spaces along Chestnut Street suitable for larger format brands not represented downtown.
Occupancy: 82%
Independent retailers: 66%
Regional brands: 14%
National chains: 20%
Daily visitors & shoppers: 30,700 (97% of 2019 Levels)
Residents within a 20-minute walk: 85,720
Jobs within a 20-minute walk: 218,844
Notable stores: Lapstone & Hammer, Kilwin’s Chocolates, Mitchell & Ness, Verde, Ten Thousand Villages
Outdoor Seating Counts
Since reaching its peak during summer 2021, outdoor dining in Center City has undergone two divergent trends as indoor dining returned to full capacity. First, the total number of outdoor seats has slowly declined each year, largely due to the dismantling of streetery structures following City Council’s introduction of a new permitting process in late 2022 that has added cost and complexity for operators. While the district has felt an impact from the loss of streeteries, many of the losses have been mitigated by the growth of café-style sidewalk seating. While Center City has lost nearly 2,000 outdoor dining seats in the past two years, we have added close to 1,000 café-style seats in the same timespan—90% of Center City’s outdoor seats are sidewalk caféstyle. Today there is 31% more café seating across the district than in 2021, and 6% more than in 2019.
26 restaurants added outdoor seating in the past year.
Sidewalk Café Sidewalk Café and Streetery Streetery Only
Outdoor Dining Seats In Center City
Source: Center City District
Pedestrian Volumes
Center City’s weekend visitors are back in a big way—even exceeding 2019 levels. Higher numbers of office workers downtown are spurring Center City’s weekday evening crowds as well.
2024 Center City Weekend Pedestrian Volumes
2019 Baseline: 259,246
Thursday and Friday pedestrian volumes in the West Market office district have risen 14% over the past year.
2024 Center City Evening Pedestrian Volumes
2019 Baseline: 102,857
Source: Placer.ai
Source: Placer.ai
CPDC Members
We are grateful for the ongoing support of Central Philadelphia Development Corporation (CPDC) members, who make reports such as this one possible. For more information on CPDC and how to join, visit joincpdc.org.
ABM
Allan Domb Real Estate
Alterra Property Group LLC
Aramark
Ballard Spahr LLP
Ballinger Bank of America NA
Blank Rome LLP
Brandywine Realty Trust
Brickstone Realty
CBP Architects
CBRE, Inc.
Colliers
Comcast
Commonwealth Land Title Insurance
Company
Conner Strong & Buckelew
CosciaMoos Architecture
Cozen O’Connor LLP
Cushman & Wakefield of Pennsylvania Inc.
Dranoff Properties
Duane Morris LLP
Econsult Solutions Inc.
Firstrust Bank
FMC Corporation
Fox Rothschild LLP
Free Library of Philadelphia
Gensler
Goldman Properties
Greenberg Traurig LLP
Newmark
O’Donnell & Naccarato
OLIN
Parkway Corporation
Pearl Properties LLC
Pennoni
Pennsylvania Horticultural Society
Philadelphia Parking Authority
PIDC
PMC Property Group
PNC Bank NA
Posel Management Company
Post Brothers
Preservation Alliance for Greater Philadelphia
Reading Terminal Market Corporation Republic Bank
Saul Ewing LLP
Savills
Scully Company
Seravalli Inc.
SSH Real Estate
Stockton Real Estate Advisors LLC
Strada Architecture LLC
Stradley Ronon Stevens & Young LLP
Structure Tone LLC
Ten Penn Center Associates LP
The Goldenberg Group
The Klein Company
The Lighting Practice
University of Pennsylvania
Univest Financial Corporation
Urban Engineers Inc.
William Penn Foundation
WRT
Zarwin Baum DeVito Kaplan Schaer Toddy PC
This report was researched and written by Jimmy Salfiti, Economic Development Manager, and Clint Randall, Vice President of Economic Development, and designed by David Orantes, Art Director. The retail occupancy survey was overseen by Jessie Brain, GIS Manager. The report team also includes Prema Katari Gupta, President and CEO; JoAnn Loviglio, Vice President of Communications and Public Relations; Leo Manning, Director of Strategic Communications; Adrianna Morsey, Research Analyst; Bonnie Thompson, Senior Director of Digital Marketing; and Lauren Smith, Economic Development Manager.